Food and beverage giant, Nestle Nigeria Plc, has released its unaudited financial statement for the first quarter (Q1), 2020.
In a notification, which was made available to the Nigerian Stock Exchange (NSE), Nestle recorded an approximately 8.7% drop in profit due to increase in administrative and distribution expenses.
Here are highlights of the unaudited financial statement.
- Revenue for the period ended March 31, 2020, is about N70.33 billion as against N70.97 billion for the corresponding period in 2019. This represents a 0.9% decrease.
- Cost of sales for the first quarter of 2020 is N38.67 billion, as against N39.50 billion that was recorded for the corresponding period in 2019. This represents a 2.1% drop over what was achieved the previous year.
- Gross profit for the period ended March 31, 2020, shows a slight improvement. Gross profit for Q1 2020 is N31.66 billion, as against N31.47 billion that was recorded for the corresponding period for 2019. This represents a 0.6% increase.
- Profit before tax for Q1 2020 is N17.45 billion as against N19.12 billion that was achieved for the same period in 2019. This shows an 8.7% decline.
- Profit after tax for Q1 2020 is about N11.20 billion, as against N12.85 billion that was achieved for Q1 2019. This shows a 12.84% decline.
- Earnings per share for the multinational firm dropped from N16.21 in 2019 to N14.21 in 2020. Although there was a slight drop in turnover when comparing the figure for 2019 and 2020, a cursory look at the unaudited financial statement shows that the major cause of the drop in profit can be attributed to the increases in administrative expenses and distribution, sales & marketing expenses.
It could be recalled that a few days ago, Nairametrics reported that Nestle hit N1,000 per share at the Nigerian Stock Exchange.
You can download the full report here.